Government Moves Grocery Watchdog To Defra

Responsibility for the UK’s grocery watchdog is set to transfer to the Department for Environment, Food and Rural Affairs (Defra) in a move aimed at strengthening fairness across the food supply chain.

The Groceries Code Adjudicator (GCA), which regulates relationships between the UK’s largest supermarket retailers and their direct suppliers, will shift from the Department for Business and Trade to Defra from 1 July 2026.

The change is designed to create a more “joined-up” approach to food supply chain oversight, aligning the GCA more closely with Defra’s wider remit supporting farmers, growers and food producers.

Farming Minister Angela Eagle said the move would help “create a level playing field right across the supply chain”, enabling productive and profitable businesses to flourish, while maintaining the regulator’s independence.

The transfer follows a key recommendation from the Farming Profitability Review led by Minette Batters, which called for more streamlined and coordinated oversight of the grocery supply chain.

The GCA will continue to enforce the Groceries Supply Code of Practice, which governs issues such as delayed payments, unilateral contract changes and dispute resolution between supermarkets and suppliers.

Government has stressed that the watchdog’s statutory powers and independence will remain unchanged, with the code itself still overseen by the Competition and Markets Authority.

Industry reaction has been broadly supportive, with stakeholders highlighting the potential for closer alignment between the GCA and Defra’s Agricultural Supply Chain Adjudicator to deliver a more cohesive “farm-to-fork” regulatory framework.

However, some voices within the supply chain have questioned whether the shift alone will go far enough, pointing to ongoing concerns around retailer pressure, rising costs and the need for stronger enforcement powers.

The transition forms part of a wider government effort to improve transparency and fairness in UK food supply chains, at a time of continued economic pressure on growers, suppliers and processors.